Update from Service NSW

Drivers must give bicycle riders at least a metre of space
From 1 March 2016, drivers who pass a bicycle rider must allow a distance of at least:

1 metre when the speed limit is 60km/h or less
1.5 metres when the speed limit is more than 60km/h
If drivers cannot pass a bicycle rider safely, they should slow down and wait until it is safe to pass the rider, leaving the minimum distance. To help drivers provide the minimum distance, some exemptions to the road rules will apply.

Drivers will be exempt from the following rules, as long as it is safe to pass the bicycle rider with at least a metre of space and they have a clear view of approaching traffic:

Keep to the left of the centre of the road (two-way road with no dividing line)
Keep to the left of the centre of a dividing line – broken and unbroken lines
Keep off a flat dividing strip
Keep off a flat painted island
Driving within a single marked lane or line of traffic
Moving from one marked lane to another across a continuous line separating the lanes
Penalty
Drivers caught not allowing the minimum distance when passing a bicycle
rider face a $319 fine and a penalty of two demerit points.